Ghana’s GoldBod Best Microeconomic Decision By Mahama – Global Affairs Analyst Praises Currency Stabilization

Global Affairs Analyst and former Aide to former Nigerian President Olusegun Obasanjo, Dr. Agbai Eke Agbai, has described Ghana’s decision to use gold to back its currency through the Ghana Gold Board (GoldBod) as one of the best microeconomic decisions taken by President John Dramani Mahama.

Speaking on Rainbow Radio 87.5FM’s Frontline Morning Show hosted by Kwabena Agyapong, Dr. Agbai said the establishment of GoldBod has eliminated the exploitation of Ghana’s gold resources and stabilized the cedi.

“I will say that one of the best microeconomic decisions that the President of Ghana did was that. Because what he has done is to take control by setting up the Gold Board, it has been able to eliminate first the exploitation of her gold,” he stated.

According to him, channeling gold that would have previously been exported through untraceable routes to the GoldBod and using it as a support system for the currency is the reason behind Ghana’s current currency stability.

He noted that the cedi now fluctuates between GH¢10.5 and GH¢12, making it predictable for businesses and attractive for investors.

“People can now predict, people can now come and invest in Ghana. The currency of Ghana is now being valued. The dollar that was almost becoming like a national currency has become less attractive. So one of the best economic policies of this administration was the stabilization of our currency through the Gold Board and that I cannot salute him enough,” he said.

Dr. Agbai contrasted Ghana’s approach with Nigeria’s management of its crude oil, describing oil as almost a curse rather than a blessing for Nigeria.

“How can you just be exporting your crude with no refinery until Dangote came on board and even with Dangote coming on board they are still selling to him in dollars because they want to sabotage it, they want to frustrate him,” he lamented.

He explained that Ghana has been able to “de-dollarize” by taking control of its own gold resources for national development and to shore up its foreign reserves, which is why Ghana’s foreign reserve has gone up.

“What your President has done is to de-dollarize it. We own gold, it’s going to be controlled by Ghana for the development of Ghana and to back up our foreign currency,” he added.